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GlaxoSmithKline (GSK) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, GlaxoSmithKline (GSK) closed at $44.88, marking a -1.77% move from the previous day. This move lagged the S&P 500's daily loss of 1.1%. At the same time, the Dow lost 0.89%, and the tech-heavy Nasdaq gained 0.03%.

Heading into today, shares of the drug developer had gained 4.39% over the past month, outpacing the Medical sector's loss of 7.84% and the S&P 500's loss of 1.81% in that time.

Wall Street will be looking for positivity from GlaxoSmithKline as it approaches its next earnings report date. In that report, analysts expect GlaxoSmithKline to post earnings of $0.62 per share. This would mark no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.22 billion, up 5.83% from the year-ago period.

Investors might also notice recent changes to analyst estimates for GlaxoSmithKline. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.44% lower. GlaxoSmithKline is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, GlaxoSmithKline is holding a Forward P/E ratio of 14.13. This valuation marks a premium compared to its industry's average Forward P/E of 13.09.

Investors should also note that GSK has a PEG ratio of 2.53 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. GSK's industry had an average PEG ratio of 2.01 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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